Humboldt reported cash and equivalents $7.0 million and a net gain on sale of investments of $5.5 million, for the nine months ended September 30, 2012. This provides the Company with ample financial flexibility for new investments during this protracted period of weak stock prices in commodity related industries.

A reduction of the value of Humboldt's portfolio holdings combined with a $4.0 million impairment in the value of a convertible debenture of Diaz Resources Ltd. ("Diaz") held by Humboldt resulted in shareholder's equity being reduced to $35.2 million or $2.93 per share, fully diluted, compared with $38.5 million or $3.19 at the end of Q2 2012 and $44.3 million and $3.64 at the end of 2011.

The resource market continues to be in the bottom of a cyclical downturn. This has been triggered by concerns over European sovereign debt and uncertainty regarding worldwide growth prospects, specifically, a concern that Chinese growth could significantly slow. In addition, the debt liquidation fear in Europe has led to a softening of demand across the commodity spectrum. The foregoing concerns have spilled over into the pricing of most commodity stocks and resulted in a reduction in their values. This has been further magnified by the inability of the US government to readily solve the budget conflict and head off the pending "Fiscal Cliff". The market decline in junior resource stocks throughout 2012 has been the most significant since 2009.

Humboldt anticipates that these extremely low stock valuations will be corrected by the end of Q1 2013 and that an upward move in the US economy will lead to significantly higher stock prices in 2013.

Outlook

Humboldt is currently in an enviable position, with a cash balance of $7 million which will allow it to benefit from any significant economic and stock market set back. From this position of strength Humboldt plans to continue to upgrade the quality of its holdings while reducing its portfolio diversity over the next year, in addition Humboldt also intends to continue to repurchase shares under the NCIB.

HIGHLIGHTS

Nine Months Ended
September 30

(Thousands, except per share amounts) unaudited

2012

2011

2010

Net gain on sale of investments

$

5,487

$

4,345

$

1,608

Unrealized increase (decrease) in investment value

$

(10,146

)

$

(25,547

)

$

2,477

Earnings and comprehensive earnings for the period

$

(8,920

)

$

(20,502

)

$

2,649

Earnings per share, diluted

$

(0.74

)

$

(1.71

)

$

0.22

Share capital

$

2,060

$

2,066

$

2,017

Retained earnings

$

32,556

$

39,462

$

45,783

Shareholders' equity

$

35,251

$

42,103

$

49,297

Cash and cash equivalents

$

6,983

$

873

$

8,261

Shares outstanding

11,932

11,967

12,022

Net asset value per share, diluted

$

2.93

$

3.45

$

3.99

Forward-looking statements - the press release today contains "forward-looking" information. Actual results could differ materially from the conclusions, forecasts or projections in the forward-looking information. Certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projections as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing the conclusion or making the forecast or projection as reflected in the forward-looking information is contained in the press release.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

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